Any cautions on buying an RV with a lien on it, please ?

Thank you, thank you everyone for sharing your experiences & advice I really appreciate it.
Title is held in CA, he may even be with the Air Force in 29 Palms.

Vintage RvR

I literally just finished this process 2 weeks ago. Pay off the lien only as a good faith down payment to the bank, then pay the balance on delivery with title.

Banks don't store titles any more, especially big banks. They pay a holding company for file services. It could take a while to get the title in hand. Also, get the complete bank name, routing number, and account number so you pay them directly.

The bank should have a Third Party Release of Lien form. Buyer and Seller sign it. When the loan is paid off, the bank will send the title and documents directly to the Buyer's address.

This is what we did when we sold our TT with a lien on it. Then after our loan was paid and clear, we called the bank and closed out the loan account. We sold for more money than the loan was...so the bank sent the check to us, the Seller. The Buyer does not need to know what you owe, just pay the agreed upon sales price.

Also, we drafted a Bill of Sale and had any DMV forms to notify DMV we sold the vehicle. Both Buyer and Seller signed those.

MudChucker wrote:
Here in canada we would go to the bank or lender that holds the lien and pay the debt, at the same time get a notice of intent to clear the lien.

X2. Pay the lien holder, and they will cut the owner a check for the balance. Also another option is to cut 2 checks based on a pay-off letter. Don't pay the owner, because they could take the money and the bank would still own your new motorhome!

Here in canada we would go to the bank or lender that holds the lien and pay the debt, at the same time get a notice of intent to clear the lien.

not to be a nay sayer so to speak , but how will you know it only has 1 lean on it ,,, say the person used it(rv) as credit on a bunch of things

Snowman9000 wrote:
We bought one that way. But the bank was a major bank, and all of the paperwork was at some place across the country. We basically had to go on faith. I mean, we had the vehicle, and we had the seller sign a written sales agreement. But the bank doesn't sign anything useful, so we were at their mercy. Furthermore, they don't send the released title to the buyer, they send it to the seller. So we had to depend not only on the bank but the seller to get the title to us.

This of course would only apply in states where the titles with liens are kept by the bank. There are many states where the owner retains the title, and the title has the lien listed on it. Michigan is one of those states.

We bought one that way. But the bank was a major bank, and all of the paperwork was at some place across the country. We basically had to go on faith. I mean, we had the vehicle, and we had the seller sign a written sales agreement. But the bank doesn't sign anything useful, so we were at their mercy. Furthermore, they don't send the released title to the buyer, they send it to the seller. So we had to depend not only on the bank but the seller to get the title to us.

DownTheAvenue wrote:

VintageRvr wrote:

The owner is OK with us going to the bank to pay it off & get title in hand etc.

That is the only way to protect yourself.

Be sure the seller executes a bill of sale and signs the title and license plate receipt and/or any other documents required by your state to register the vehicle in your name. Get any documents that require notarized while at the bank.

Of course, carefully inspect the RV before hand!!!!!!!

AND! When you're at the bank make sure they issue you a "Release of Lien" declaration.

VintageRvr wrote:

The owner is OK with us going to the bank to pay it off & get title in hand etc.

That is the only way to protect yourself.

Be sure the seller executes a bill of sale and signs the title and license plate receipt and/or any other documents required by your state to register the vehicle in your name. Get any documents that require notarized while at the bank.

Of course, carefully inspect the RV before hand!!!!!!!